Compute the Payback Period for a Project with the Following

question 69

Multiple Choice

Compute the payback period for a project with the following cash flows, if the company's discount rate is 12%. Initial outlay = $450
Cash flows: Year 1 = $325
Year 2 = $65
Year 3 = $100

• A) 3.43 years
• B) 3.17 years
• C) 2.88 years
• D) 2.6 years

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Definitions:

Golgi Tendon Organs

Sensory receptors located at the junction of muscles and tendons that monitor tension developed in muscles, helping to prevent damage from excessive force.

Muscle Contraction

The process by which muscle fibers generate tension through the action of actin and myosin, leading to movement or maintenance of posture.

Muscle Spindles

Sensory receptors within the belly of a muscle that primarily detect changes in the length of the muscle and send signals to the central nervous system.

Superficial Pain

Pain that occurs on the skin or surface tissues, typically sharp but not deep-seated.